ROSH HAAYIN, Israel, May 19 /PRNewswire-FirstCall/ -- - Pointer
Breakeven Net Income in Q1 2009 Compared With Net Income of $752
Thousand in Q1 2008 - $3 Million Decrease in Net Debt Pointer
Telocation Ltd. (Nasdaq Capital Market: PNTR, Tel-Aviv Stock
Exchange: PNTR) - a leading developer, manufacturer and operator of
high-end technology and products for AVL (Automatic Vehicle
Location) solutions for stolen vehicle retrieval, fleet management,
car & driver safety, vehicle security and asset management, and
a leading provider of RSA (Road Side Assistance) services,
announced today its financial results for the first quarter of
2009. Financial Highlights: Revenues: Pointer's revenues for the
first quarter of 2009 decreased by 13.5%, to $16 million from $18.5
million in the comparable period in 2008. International activities
consisted of 26% of total revenues compared with 28% in the
comparable period in 2008. Revenues from products were $5.2
million, and consisted of 32% of total revenues, as compared to
$7.6 million and 41%, respectively, in the first quarter of 2008.
Revenues from services were $10.8 million, and consisted of 68% of
total revenues, as compared to $10.9 million and 59%, respectively,
in the first quarter of 2008. Gross Profit: For the first quarter
of 2009, gross profit decreased 3% to $6.9 million from $7.2
million in the first quarter of 2008. As a percentage of revenues,
gross profit was approximately 43.3% in the first quarter of 2009,
as compared to approximately 38.8% in the same period in 2008.
Operating Income: Pointer reported $1.8 million in operating income
for the first quarter of 2009, compared to $2.3 million in
operating income for the first quarter of 2008. During the first
quarter in accordance with applicable accounting rules, Pointer
initially adopted Statement of Financial Accounting Standards No.
160, "Noncontrolling Interest in Consolidated Financial Statements"
("SFAS 160") which establishes accounting and reporting standards
for the non controlling interest (previously minority interest) in
a subsidiary and for the deconsolidation of a subsidiary. The
adoption of SFAS 160 affected, among others, Pointer 's accounting
for allocation of losses to non controlling shareholders in its
subsidiaries, which resulted in a decrease in Pointer's share in
its subsidiaries' net losses." Net Income: Net income attributable
to Pointer's shareholders was $3 thousand or $0.00 per share in the
first quarter of 2009, as compared to $0.8 million or $0.16 per
share in the first quarter of 2008. Net income attributable to non
controlling interest was $1.1 million in the first quarter of 2009
compared to $0.6 million in the first quarter of 2008. For the
first quarter of 2009 the net income, before giving effect to the
exclusion of those earnings relating to non-controlling interest in
accordance with SFAS 160, was $1.1 million, as compared to a net
income of $1.3 million in the first quarter of 2008. Non-GAAP net
income attributable to Pointer: Pointer's non-GAAP net income in Q1
2009 was $0.8 million, as compared to non-GAAP net income of $1.8
million in Q1 2008. EBITDA: Pointer's EBITDA decreased to $3.1
million in the first quarter of 2009, as compared to $3.8 million
in Q1 2008. The EBITDA comfortably serves our debt. Danny Stern,
Pointer CEO, said: "Our Q1 2009 results reflect the turbulence in
the global economy and the slowdown in the car industry. The
activity of our Products and Technology division suffered from the
global slowdown while the activity of our services business remains
stable, through maintaining our strong customer base and reputable
wide array of services. Since the last quarter of 2008 we increased
our R&D efforts, with the intention of introducing new products
during 2010. Shagrir, Pointer's Israeli subsidiary, recently
acquired 51% of CAR2GO, a carsharing service provider. Carsharing
is a rapidly expanding trend in urban areas worldwide, because of
its significant contribution to the environment and its reduction
in costs and time for the large urban population. Since we entered
the slowdown from a relatively strong standpoint, we continue to
search for M&A opportunities," concluded Mr. Stern.
Reconciliation between results on a GAAP and Non-GAAP basis is
provided in a table immediately following the Condensed Interim
Consolidated Statements of Cash Flows. Non-GAAP financial measures
consist of GAAP financial measures adjusted to exclude amortization
of acquired intangible assets and deferred income tax, as well as
certain business combination accounting entries. The purpose of
such adjustments is to give an indication of our performance
exclusive of non-GAAP charges and other items that are considered
by management to be outside of our core operating results. Our
non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP measures, and
should be read in conjunction with our consolidated financial
statements prepared in accordance with GAAP. Our management
regularly uses our supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and make
operating decisions. We believe that these non- GAAP measures help
investors to understand our current and future operating cash flow
and performance, especially as our three most recent acquisitions
have resulted in amortization and non-cash items that have had a
material impact on our GAAP profits. These non-GAAP financial
measures may differ materially from the non-GAAP financial measures
used by other companies. Reconciliation between results on a GAAP
and non-GAAP basis is provided in a table immediately following the
consolidated statements of cash flows in this press release.
Pointer uses EBITDA as a non-GAAP financial performance
measurement. EBITDA is calculated by adding back to net income
interest, taxes, depreciation and amortization. EBITDA is provided
to investors to complement results provided in accordance with
GAAP, as management believes the measure helps illustrate
underlying operating trends in the Company's business and uses the
measure to establish internal budgets and goals, manage the
business and evaluate performance. EBITDA should not be considered
in isolation or as a substitute for comparable measures calculated
and presented in accordance with GAAP. A reconciliation of EBITDA
to GAAP measures is included in the financial tables accompanying
this press release Conference Call Information: Pointer
Telocation's management will host a conference call with the
investment community to review and discuss the financial results:
Conference call will take place today, May 19th, 2009 on 9:30 AM
EST, 16:30 Israel time. To listen to the call, please dial in to
one of the following teleconferencing numbers. Please begin placing
your call at least 5 minutes before the conference call commences.
From USA: +1-866-527-8676 From Israel: +972-3-918-0685 A replay of
the conference call will be available through May 20th, 2009 on the
Company's website at http://www.pointer.com/. About Pointer
Telocation: The Pointer Telocation Group, publiclly traded on
Nasdaq (PNTR) and on TASE (PNTR), develops, manufactures, provides
and operates advanced command and control technonogies for the
automotive and cargo industries. With 500,000 installations in 25
countries around the world, The Pointer Group is Israel's leading
exporter of state-of-the-art solutions for managing vehicle fleets.
As a service provider, The Pointer Group operates through its
subsidiary Shagrir Systems Ltd., that provides comprehensive
solutions for the automotive markets in Israel, Argentina, Mexico
and Romania. The Pointer Telocation Group is headquartered in Rosh
Ha'ayin, Israel. CEO is Danny Stern. For more information, please
visit http://www.pointer.com/ Safe Harbor Statement This press
release contains forward-looking statements with respect to the
business, financial condition and results of operations of Pointer
and its affiliates. These forward-looking statements are based on
the current expectations of the management of Pointer, only, and
are subject to risk and uncertainties relating to changes in
technology and market requirements, the company's concentration on
one industry in limited territories, decline in demand for the
company's products and those of its affiliates, inability to timely
develop and introduce new technologies, products and applications,
and loss of market share and pressure on pricing resulting from
competition, which could cause the actual results or performance of
the company to differ materially from those contemplated in such
forward-looking statements. Pointer undertakes no obligation to
publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. For a more detailed
description of the risks and uncertainties affecting the company,
reference is made to the company's reports filed from time to time
with the Securities and Exchange Commission. CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands March 31,
December 31, 2009 2008 Unaudited ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 1,339 $ 2,708 Trade receivables, net 13,509
13,509 Other accounts receivable and prepaid expenses 3,314 2,774
Inventories 2,893 3,999 Total current assets 21,055 22,990
LONG-TERM ASSETS: Long-term accounts receivable 423 339 Severance
pay fund 4,685 4,925 Property and equipment, net 7,311 7,998
Deferred income taxes 942 1,037 Other intangible assets, net 13,554
14,894 Goodwill 46,580 50,416 Total long-term assets 73,495 79,609
Total assets $ 94,550 $ 102,599 CONDENSED INTERIM CONSOLIDATED
BALANCE SHEETS U.S. dollars in thousands March 31, December 31,
2009 2008 Unaudited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Short-term bank credit and current maturities of
long-term loans $ 6,376 $ 7,849 Trade payables 6,550 8,613 Deferred
revenues and customer advances 9,665 8,701 Other accounts payable
and accrued expenses 5,395 5,792 Total current liabilities 27,986
30,955 LONG-TERM LIABILITIES: Long-term loans from banks 17,483
20,520 Long-term loans from shareholders and others 3,315 3,305
Other long-term liabilities 310 257 Accrued severance pay 5,908
6,375 Total long term liabilities 27,016 30,457 Total shareholders'
equity(*) 39,548 41,187 Total liabilities and shareholders' equity
$ 94,550 $ 102,599 (*)Reclassification due to the adoption of SFAS
160 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS U.S.
dollars in thousands (except share and per share data) Three months
ended Year ended March 31, December 31, 2009 2008 2008 Unaudited
Revenues: Products $ 5,184 $ 7,607 $ 30,645 Services 10,802 10,871
46,010 Total revenues 15,986 18,478 76,655 Cost of revenues:
Products 2,961 3,957 16,392 Services 5,858 7,107 29,869
Amortization of intangible assets 246 245 980 Total cost of
revenues 9,065 11,309 47,241 Gross profit 6,921 7,169 29,414
Operating expenses: Research and development, net 754 673 2,511
Selling and marketing 1,484 1,700 6,934 General and administrative
2,386 1,925 8,311 Amortization of intangible assets 524 606 2,365
Total operating expenses 5,148 4,904 20,121 Operating income 1,773
2,265 9,293 Financial expenses, net 675 750 4,054 Other income
(expenses), net (12) 16 22 Income before taxes on income 1,086
1,531 5,261 Taxes on income 19 218 640 Net income(*) $ 1,067 $
1,313 $ 4,621 Less: Net income attributable to the non controlling
interest $ 1,064 (*)$ 561 (*)$ 2,248 Net income attributable to
Pointer's shareholders $ 3 $ 752 $ 2,373 Basic net earnings (loss)
per share $ 0.00 $ 0.16 $ 0.51 Diluted net earnings (loss) per
share $ 0.00 $ 0.16 $ 0.50 (*)Reclassification due to the adoption
of SFAS 160 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in
thousands Year Three months ended ended December March 31, 31, 2009
2008 2008 Unaudited Cash flows from operating activities: Net
income $ 1,067 (*)$ 1,313 (*)$ 4,621 Adjustments required to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,381 1,779 6,918 Accrued interest
and exchange rate changes of convertible debenture and long-term
loans (25) 185 1,187 Accrued severance pay, net (112) 345 619 Gain
from sale of property and equipment, net (75) (88) (36)
Amortization of deferred stock-based compensation 144 71 350
Increase in trade receivables, net (942) (2,443) (1,773) Increase
in other accounts receivable and prepaid expenses (727) (843) (6)
Decrease (increase) in inventories 321 68 (2,088) Write-off of
inventories - - 112 Increase in deferred income taxes - - (178)
Decrease (increase) in other long-term accounts receivable (114) -
23 Increase (Decrease) in trade payables (1,523) 36 888 Increase
(decrease) in other accounts payable and accrued expenses 1,792
1,241 379 Net cash provided by operating activities 1,187 1,664
11,016 Cash flows from investing activities: Purchase of property
and equipment (469) (719) (3,476) Proceeds from sale of property
and equipment 222 242 605 Increase in other accounts receivable -
(102) (357) Net cash used in investing activities (247) (579)
(3,228) Cash flows from financing activities: Receipt of long-term
loans from banks - - 9,064 Repayment of long-term loans from banks
(1,424) (1,012) (4,930) Receipt of long-term loans from
shareholders and others 48 - - Repayment of long-term loans from
others (7) (823) (10,201) Proceeds from issuance of shares and
exercise of warrants, net - - 1,000 Short-term bank credit, net
(947) 226 (970) Net cash used in financing activities (2,330)
(1,609) (6,037) Effect of exchange rate on cash and cash
equivalents 21 (28) (243) Increase (decrease) in cash and cash
equivalents (1,369) (552) 1,508 Cash and cash equivalents at the
beginning of the period 2,708 1,200 1,200 Cash and cash equivalents
at the end of the period $ 1,339 $ 648 $ 2,708 (*)Reclassification
due to the adoption of SFAS 160 Reconciliation Table of Non-GAAP
Measures U.S. dollars in thousands Reconciliation of GAAP net
income to non-GAAP net income is as follows: Three months ended
Year ended December March 31, 31, 2009 2008 2008 Unaudited Net
income attributable to Pointer and the non controlling interest $
1,067 $ 1,313 $ 4,621 Net income attributable to the non
controlling interest (1,064) (561) (2,248) Amortization of
intangible assets and impairment of long-lived assets 770 851 3,345
Loan Discount - - 704 Tax on income 218 640 Non-GAAP Net income
attributable to Pointer's shareholders 773 1,821 7,062 To
supplement the consolidated financial statements presented in
accordance with generally accepted accounting principles ("GAAP"),
the Company uses EBITDA as a non-GAAP financial performance
measurement. EBITDA is calculated by adding back to net income
interest, taxes and depreciation amortization. EBITDA is provided
to investors to complement results provided in accordance with
GAAP, as management believes the measure helps illustrate
underlying operating trends in the Company's business and uses the
measure to establish internal budgets and goals, manage the
business and evaluate performance. EBITDA should not be considered
in isolation or as a substitute for comparable measures calculated
and presented in accordance with GAAP. Reconciliation the GAAP to
non-GAAP operating results: CONDENSED EBITDA US dollars in
thousands Three months ended Year ended March 31, December 31, 2009
2008 2008 Unaudited Net income attributable to Pointer and the non
controlling interest: $ 1,067 $ 1,313 $ 4,621 Financial expenses,
net 675 750 4,054 Tax on income 19 218 640 Depreciation and
amortization 1,379 1,562 6,116 EBITDA 3,140 3,843 15,431 Contact:
Zvi Fried, V.P. and Chief Financial Officer Tel.; +972-3-572-3111
E-mail: Yael Nevat, Commitment-IR.com Tel: +972-9-741-8866 E-mail:
DATASOURCE: Pointer Telocation Ltd CONTACT: Contact: Zvi Fried,
V.P. and Chief Financial Officer, Tel.; +972-3-572-3111, E-mail: ;
Yael Nevat, Commitment-IR.com, Tel: +972-9-741-8866, E-mail:
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